HOA Tax Return
Preparation

When tax season rolls around, it’s a busy time for everyone, including your Homeowners Association (HOA). Although HOAs are non-profit organizations, they are still classified as businesses by the Internal Revenue Service (IRS) and therefore have the same tax filing obligations as any corporation. This means that even if your HOA is non-profit, the IRS treats it as a corporation for tax purposes. As a result, HOAs are required to file tax returns, including state returns in certain states.

However, filing tax returns does not automatically mean that the HOA will owe taxes. It is essential to understand the rules and regulations before filing to avoid potential issues. HOA tax returns also require special attention to different types of income and expenses.

While the IRS recognizes your association as a corporation, there is a specific provision in the tax code, Section 528, that applies specifically to associations like yours. By filing under Section 528, certain portions of your HOA’s income can be exempt from taxation. This exemption only applies to specific types of revenue, so understanding your tax status and setting up accurate record-keeping is critical.

Our goal is to make the process of preparing your HOA tax return as smooth as possible and help minimize the taxes you owe through strategic planning.

HOA Tax Return

Services for Different Communities

Form 1120

Filling out Form 1120 makes all of an HOA’s net income liable to be taxed. This form, typically utilized by corporations, is more intricate and requires substantial effort. It also calls for a higher level of accounting proficiency. On a positive note, it offers a lower tax rate (15%) for the initial $50,000 of income.

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Form 1120H

Form 1120-H can be chosen by HOAs as an alternative instead of the initial form (as allowed under section 528 of the IRS). It’s less complex but has specific requirements: 60% income from members, 90% expenses for maintenance, 85% residential units, no community member benefits from annual income

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Form 100 and 199

The purpose of CA Form 100 is to reveal the financial info of a corporation, evaluate its taxable income, and determine its responsibility for state income tax. The California Corporation Franchise (Income Tax Return) is a tax form used by corporations operating in California. It is used to report income and fulfill tax responsibilities.

CA Form 199 is a yearly information return that tax-exempt organizations and specific nonprofits submit to the Franchise Tax Board (FTB) in order to disclose their financial information and activities as mandated by tax filing regulations.

Our Packages

Choose one of
Our Packages

HOA Solutions offers flexible management packages, designed to meet every community’s needs with efficiency and care.
1|Basic
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Package
  • Budget Preparation and Planning
  • Assessment and Dues Collection
  • Accounts Receivable & Payable
  • Cash Flow Management
  • Reserve Fund Management
  • Bank Reconciliation
  • Financial Reporting & Disclosures
  • Tax Preparation
  • Escrow Assistance
  • Collection
  • Annual Disclosures
3|Elite
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Package
  • Includes Basic Package
  • Physical Meeting
  • Virtual Meetings
  • Property Maintenance and Repair
  • Property Inspections
  • Proposals and Contracts
  • Enforcement of Governing Documents
  • Election
  • Records & Correspondence
  • Newsletters and Notifications
  • 24/7 Emergency Service
2|Plus +
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Package
  • Includes Basic Package
  • Virtual Meetings
  • Property Maintenance and Repair
  • Proposals and Contracts
  • Enforcement of Governing Documents
  • Election
  • Records & Correspondence
  • Newsletters and Notifications
  • 24/7 Emergency Service

Approach Toward Association Management

Board members’ needs and objectives

Carefully engage in active listening to effectively grasp the needs and goals of the Board members regarding their community. Take the time to attentively comprehend their aspirations, concerns, and desired outcomes for the betterment of their community. Through this attentive approach, gain a comprehensive understanding of their vision and objectives, allowing you to tailor your services accordingly and foster a successful partnership based on their unique requirements.

Customizing HOA Management Services

Create personalized and strategic association management solutions that align with their vision and effectively accomplish their objectives. By tailoring our services to their specific requirements, we aim to provide comprehensive support that not only meets their goals but also helps them realize their community’s full potential. Our goal is to work collaboratively with board members to implement customized strategies that optimize the management of their association, ensuring the successful fulfillment of their vision.

Expert Management of Association Business

Efficiently manage essential responsibilities including reports, meetings, resident communication, and day-to-day tasks. Our dedicated team ensures meticulous report preparation, skillful leadership in association meetings, effective communication with residents, and smooth community operation. By proficiently handling these tasks, we enable board members to focus on strategic decision-making and goal achievement, fostering a harmonious and well-functioning community.

Providing Resources, and Management Tools

Empower community leaders with guidance, resources, and tools for confident governance. We provide valuable advice, essential resources, and decision-making tools to foster leadership confidence, informed decision-making, and effective problem-solving. Additionally, we actively support creating a safe, harmonious community. Through proactive measures, open communication, and conflict resolution, we cultivate a positive atmosphere where residents feel valued, respected, and heard, enhancing overall quality of life.

Responsive Customer Service

We prioritize homeowners’ inquiries and requests, responding promptly and professionally. Our dedicated team understands the significance of timely and respectful communication. We strive to provide efficient and courteous responses to ensure homeowners’ needs are met. By maintaining open lines of communication and demonstrating professionalism, we aim to foster a positive relationship and promote homeowners’ satisfaction and confidence in our services.

Developing a Funding Plan

Utilize a comprehensive understanding of the community’s vision, goals, and budget to assist in the development of a strategic plan. By leveraging this understanding, we work collaboratively to create a roadmap that aligns with their objectives. Additionally, we prioritize the availability of funding for both immediate and future improvements, ensuring that financial resources are accessible when required. Our goal is to support the community in achieving its vision while maintaining financial stability and sustainability for long-term success.

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    HOA SolutionsWho We Are
    HOA Solutions has over 15 years of extensive experience in providing property management services.
    Our locationsWhere to find us?
    Click the map to get Information.
    https://hoasolutions.us/wp-content/uploads/2025/01/img-footer-map-2-1.png
    Services we provideWhat We Do
    List of services that we provide.
    Association Management
    Preparing HOA Tax Return
    HOA Collection Services
    HOA Reserve Study
    Financial Management
    Escrow Services
    Get in touchOur Social links
    Stay updated on latest property management services by following us on our social media platforms.
    HOA SolutionsWho We Are
    HOA Solutions has over 15 years of extensive experience in providing property management services.
    Our locationsWhere to find us?
    Click the map to get Information.
    https://hoasolutions.us/wp-content/uploads/2025/01/img-footer-map-2-1.png
    Services we provideWhat We Do
    List of services that we provide.
    Preparing HOA Tax Return
    Association Management
    HOA Collection Services
    HOA Reserve Study
    Financial Management
    Escrow Services
    Get in touchOur Social links
    Stay updated on latest property management services by following us on our social media platforms.

    Copyright © by HOA Solutions. All rights reserved.

    Copyright © by HOA Solutions. All rights reserved.